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Inward Foreign Direct Investment and Trade Openness in Vietnam: A Nonlinear Autoregressive Distributed Lag Approach

Author

Listed:
  • Jen-Yao Lee

    (Department of International Business, National Kaohsiung University of Science and Technology, Kaohsiung 82445, Taiwan)

  • Ya-Chuan Hsiao

    (Department of International Business, National Kaohsiung University of Science and Technology, Kaohsiung 82445, Taiwan)

  • Ngochien Bui

    (Department of International Business, National Kaohsiung University of Science and Technology, Kaohsiung 82445, Taiwan)

  • Tien-Thinh Nguyen

    (Department of International Business, National Kaohsiung University of Science and Technology, Kaohsiung 82445, Taiwan)

Abstract

This study aims to examine the asymmetric relationship between trade openness and FDI (foreign direct investment) inflows to Vietnam by using NARDL (nonlinear autoregressive distributed lag) during the period from 1997 to 2019. Our findings show that the influence of FDI on trade openness is asymmetric in the short-run and long-run. But the influence of trade openness on FDI is symmetric in the short-run and asymmetric in the long run.

Suggested Citation

  • Jen-Yao Lee & Ya-Chuan Hsiao & Ngochien Bui & Tien-Thinh Nguyen, 2021. "Inward Foreign Direct Investment and Trade Openness in Vietnam: A Nonlinear Autoregressive Distributed Lag Approach," Economies, MDPI, vol. 9(3), pages 1-18, August.
    • Handle: RePEc:gam:jecomi:v:9:y:2021:i:3:p:120-:d:620797
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    References listed on IDEAS

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    11. Raphael S. Etim & Mfon S. Jeremiah & Ofonime O. Jeremiah, 2019. "Attracting Foreign Direct Investment (FDI) In Nigeria through Effective Tax Policy Incentives," International Journal of Applied Economics, Finance and Accounting, Online Academic Press, vol. 4(2), pages 36-44.
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    Cited by:

    1. Nguyen Anh Tru & Poczta-Wajda Agnieszka, 2024. "The relationship between Foreign Direct Investment, trade openness, exchange rate, and Gross Domestic Product per capita in Vietnam," Journal of Economics and Management, Sciendo, vol. 46(1), pages 189-212.
    2. Mohamed Ali Labidi & Anis Ochi & Yosra Saidi, 2024. "Relationship Analysis Between FDI and Economic Growth in African Countries: Does Governance Quality Matter?," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(4), pages 16511-16540, December.
    3. repec:bcp:journl:v:7:y:2023:i:11:p:100-124 is not listed on IDEAS
    4. Muhammed Sehid Gorus & Veli Yilanci & Maxwell Kongkuah, 2023. "FDI Inflows-Economic Globalization Nexus in ASEAN Countries: The Panel Bootstrap Causality Test Based on Wavelet Decomposition," Asia-Pacific Financial Markets, Springer;Japanese Association of Financial Economics and Engineering, vol. 30(2), pages 339-362, June.
    5. Scalamonti, Francesco, 2024. "The foreign investments-growth nexus in underdeveloped countries: the state-of-art of research analysing a selected and recent empirical literature (2020-2022)," Technological Forecasting and Social Change, Elsevier, vol. 198(C).

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